The International Ergonomics Association defines ergonomics as “the scientific discipline concerned with the understanding of interactions among humans and other elements of a system, and the profession that applies theory, principles, data, and methods to design in order to optimize human well-being and overall system performance.” In other words, ergonomics is a combination of systems, processes, and products that enhance employee safety.

Regardless of the size of your company or its industry, whether agriculture, construction, healthcare, manufacturing, mining, transportation, retail, or something entirely different, if you have employees who handle materials, it is essential you provide them with viable ergonomic solutions. Otherwise, you could easily see a rise in the number of injured workers, which negatively impacts productivity and employee morale, not to mention the increasing number of worker’s compensation claims.

Multiple studies performed by highly respected organizations show a direct link between injuries, especially musculoskeletal ones, and a lack of ergonomics. For you to run a successful business, you need healthy employees and no risk of insurance claims or personal injury lawsuits. One change can achieve those goals.

The current statistics will help you understand the magnitude of ergonomics for material handlers. For instance, the 25 million people over the age of 55 working today will jump to 32 million by 2025. Also, roughly 33 percent of Americans are obese, carrying over 30 pounds of excess fat. That means there is a lot of aging and overweight material handlers on the job. Another statistic shows manual labor, specifically material handling, accounts for 65 percent of all worker’s compensation claims filed.

An increase in customer demand only compounds the problem. As consumers want more products delivered faster, the already hard job performed by material handlers becomes even more challenging. In response, many companies extend their employees’ hours to meet those growing demands. The harder and longer material handlers work, the higher the risk of sustaining an injury.

It is also essential for you to put work practice controls in place. In other words, material handlers need specific training on how to perform their job effectively, yet safely. You might even rotate them, so they do more than one type of task. That way, your workers avoid prolonged periods of repetitive work. Changing movement to be more ergonomically sound will make a significant difference.

Depending on the material moved, some handlers use excessive force as part of the task. As expected, using the muscles with great force is a recipe for injury. Some of the ergonomic solutions to consider include teaching counterbalancing methods, providing your workers with mechanical assists, and giving them dollies and carts to use.

Repeating or Sustaining Awkward Positions

You may not realize it, but repetitive or sustained awkward positions put an extreme amount of force on muscles, tendons, and joints. Again, ergonomics can eliminate this stress on your material handlers. The goal is to select ergonomic tools that allow your employees to keep optimal joint positions and avoid vulnerability. Along with beneficial online training courses to teach them proper work techniques, job rotation is another viable solution.

While the safety and health of your employees is your number one priority, it is crucial to understand how poor or non-ergonomics in the workplace can lead to other devastating results.

When a material handler sustains an injury, he or she must take time off from work as ordered by a doctor. Because of that, you end up short staffed. In response, you would likely see production decline, which has a direct effect on customer satisfaction and employee morale. Your customers do not care why their orders are late, damaged, or missing components. All they want is the stellar product they ordered.

As the number of customer complaints rises, you can expect to see frustration, hopelessness, and even anger among your team of material handlers. In their eyes, they are working as hard and diligently as possible, yet not making customers happy. One injury due to poor or a lack of ergonomics in the workplace starts a vicious cycle that is hard to stop.

If you employ material handlers and worry about an existing or developing ergonomics situation in your business, act now. Consider the solutions mentioned. As for training, take advantage of superior-quality courses designed by industry experts, medical professionals, business executives, ergonomic specialists, and more.

For more insights, subscribe to the Go1 newsletter to stay on top of all the latest L&D trends. Or, you can book a demo today to find out how Go1 can help with your team’s learning needs.

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In order to be effective, ergonomic design must take into account the physical characteristics of workers and their work environment.

The importance of ergonomics for material handling

A Learning Management System, or LMS, is an excellent way to deliver automated training. In today’s working world, an LMS is a vital part of any company’s learning and development strategy. Not only does this benefit your leadership team, but also every employee within your organization.

If you plan to launch a new LMS, you need to develop a communication plan to ensure that everyone involved is on the same page. For this system to work, there has to be a cohesive effort. Otherwise, you could end up with an LMS that either falls short of expectations or fails entirely. Remember, a successful implementation will drive your business results.

As part of your communication plan, make sure you have each of the following objectives on the list.

Vision – You, as the business owner, along with each member of your leadership team, must discuss and define the vision of the learning experience you want your LMS to provide. Because every department has a unique role, this can be challenging. The goal is to communicate what each area of the company needs and then determine how to shape the architecture of the LMS so that it accommodates.

Team assembly – Especially when it comes to launching a new LMS, you and the leaders of your company need to discuss the various roles involved and who has the required skillset for each. Also, when talking about the best employees to work on the LMS team, you want people who can effectively work together. As for the project team, it should consist of members of each department, including HR, sales and marketing, customer support, and IT.

Define roles – After selecting the right team to work on the LMS launch, you and your leaders must carefully define the roles of each person and his or her accountabilities. During the planning phase of the project, communication as to special assignments, what each person will contribute, and to whom that individual is accountable, is crucial.

Team activation – The next communication aspect is informing the team members of their newly assigned roles and discussing their functional requirements. Also, make sure the newly formed LMS team has the name of a go-to person if issues arise to keep the launch date on track.

User experience – The LMS team needs to continue communication so they can accurately analyze the needs of the audience. For example, some people using your LMS may want to explore learning options while others want to sign up for training courses right away. With good communication, your new LMS will accommodate everyone who uses it while ensuring a positive experience.

Business processes – For success with your LMS launch, you need to communicate with the assigned team the primary business processes the system should support.

Learning the LMS – Unless each member of the core team has a full understanding of how the LMS functions, the project will struggle to succeed. Because this group of people will make decisions that affect the business, they must have open communication about the right software and its capabilities, formal training, hands-on practice, and more.

Solutions – Initially, you will have a limited number of available courses. However, you need to communicate to the project team the importance of conducting a formal assessment so you can populate the LMS with content people want and need. That way, you end up with an LMS with thousands of courses that support business, as well as employee growth and development.

Mitigation plan – Even when doing all the right things, there is a risk of your new LMS having low usage. To prevent this from happening, make sure you include user experience, management planning, communication, user support, and content marketing in your overall strategy.

Your launched LMS will impact virtually all departments and employees within your organization. However, with only a handful of individuals on the project team, good communication for every aspect of the launch is critical.

The goal of launching a new LMS is to serve your users. However, even the dedication, knowledge, and skills of the project team are not enough to automatically equate to success. For your LMS to succeed, communication is crucial before, during, and after the launch. Along with making changes to the system, the LMS team must support the users. That means it must have ongoing discussions as to how best to resolve issues when they arise.

LMS data – Use this data as a storytelling tool to show online training is a practical way to transform skillsets.

Identify gaps – Rely on your executive-level staff to identify emerging gaps in the skills learning can help.

Diversity – Offer courses that cater to a broad audience, including leaders, employees, contractors, and even outside users.

Content – Make sure the content provided on your LMS meets established goals.

If you plan to launch a new LMS, you need to develop a communication plan to ensure that everyone involved is on the same page.  Here's how.

What to include in your communications plan when launching your new LMS

If you plan to launch a new LMS, you need to develop a communication plan to ensure that everyone involved is on the same page.  Here's how. 

Multiple industries must follow compliance laws and regulations. Not doing so could result in receiving a citation, which leads to further problems. As a responsible owner, you want to do everything you can to avoid having an industry or government agency cite your business.As a responsible owner, you want to do everything you can to avoid having an industry or government agency cite your business. This is one reason why online training courses are a critical tool at your disposal. When you use the best source of material, you can avoid costly consequences.

Staying compliant means your organization conforms to set regulations, policies, and laws. The goal is to meet all mandated compliance requirements to avoid receiving a citation. A violation is bad enough, but in response to that, a lot of negative things can happen. You need to understand that compliance regulations, policies, and laws cover many areas, including internet use, financials, manufacturing processes, materials and substances used, human resource policies, importing and exporting, employee safety, and more.

For your business, it is critical to learn what regulations, policies, and laws apply and then make any necessary changes to ensure it is 100 percent compliant. For companies based in the United States, employers can visit the Small Business Administration website, which provides a single point of access to information and government services to help them remain compliant.

OSHA (the Occupational Safety and Health Administration) dates back to 1970. Congress created this organization to ensure safe and healthy working conditions through a set of enforceable standards. To accomplish those goals, OSHA develops extensive training materials, offers outreach programs, educates employers, and helps both employers and workers whenever needed.

Compliance enforcers and requirements vary to some degree depending on the type of industry and the regulation, policy, or law. However, keeping employees safe has no boundaries. Although the risk of injury is significantly higher for manual labor jobs, this is something that can happen even in a two-person office. For that reason, it is imperative that you adopt policies that guarantee compliance, thereby dramatically reducing the possibility of someone sustaining an injury at work.

Although OSHA has compliance mandates specific to different industries, all business owners should take the time to review the basic standards under “general industry.” This standard, known as 29 CFR 1910, serves as a foundation for a typical work environment.

Following are a few examples of the top OSHA violations.

Fall Protection (Construction) – While someone can fall and sustain an injury in any work environment, this risk affects the construction and similar industries the most. As a way of protecting workers from fall-related accidents, OSHA created two unique sets of standards. While one of the fall protection standards applies specific to the construction industry, the other is for all remaining industries.

Respiratory Protection – This compliance standard applies to industries with a risk of employee exposure to gasses, sprays, dust, smoke, fumes, or vapors. For compliance, employers must create, maintain, and enforce a protection program specific to respiratory accidents. They must provide workers with a proper correct breathing apparatus and train them on safe use and maintenance. Also, employers must monitor workers to ensure they follow instructions.

Hazard Communication – This OSHA standard helps prevent injuries to workers who are exposed to chemicals. For employers to remain compliant, they must create and implement a written program about hazard communication, including a list of all hazardous substances used by the company. Employers must also share this information with employees and provide training on dangerous substances, the proper use of chemicals, and the appropriate steps to take for protection.

Other OSHA standards cover electrical wiring, scaffolding, ladders, machine guarding, powered industrial trucks, and more.

OSHA even has compliance mandates in place for employee medical records. Under section 1910.1020, employees, their designated representatives, and government officials should always have access to specific records for both exposure and medical care. According to this standard, approved requesters can gain access to files within a reasonable amount of time, at a reasonable place, and in a reasonable manner.

Along with reviewing the material provided by the Small Business Administration, you as a business owner should perform self-inspections on a consistent basis to ensure your company is 100 percent compliance. For instance, inspect walkways to make sure they are clutter-free. Also, have a nonslip material applied to the floor, fill any cracks and holes, remove any protruding or sharp objects, clean up spilled materials immediately, and so on.

For employee safety, regardless of the size of your company or industry, remain compliant with OSHA standard 1910.36-37 for emergency and fire prevention action plans. Included in that are a fire alarm system, fire suppression system, nonlocking doors, more than two exit routes, clearly marked exits, and more. Along with developing and implementing a plan for compliance, you must disseminate the information to all workers.

Potential Consequences of a Compliance Citation

If your company is noncompliant with OSHA and other enforceable standards, you could receive a fine up to $10,000, depending on the specific violation. Especially if you have a smaller business or have only recently launched one, a single citation could prove disastrous.

There are also criminal penalties to consider. For instance, a citation for wrongful disclosure can result in a fine of as much as $250,000. In fact, imprisonment is a consequence for some violations. Not only that, but releasing nondisclosure information or not maintaining HIPAA compliance could cost you millions of dollars in fines.

Citations could have a severe impact on the reputation of your company, as well. You could struggle to find employees willing to work for you out of fear of sustaining an injury or worse. There is also the risk of losing customers. As you can see, staying compliant is critical for the safety of your employees and the success of your business.

Go1 is the leading source for online training courses, including those that cover every compliance topic imaginable. As they are created and often presented by industry and government experts, you learn directly from someone with extensive knowledge. Visit our site today for courses on compliance issues to protect your workers and business.

How online training can help prevent employer citations

Got an important job interview coming up? It’s normal to feel a bit anxious before (and during!) an interview.

But while nerves are certainly a normal part of the interview process, you don’t want anxiety to get in the way of you getting the job.

After all, there’s nothing more frustrating than knowing that you have the right skills and experience to do the job, only to have things fall apart during the interview.

If you get super nervous at the thought of attending an interview, these tips can help you feel more relaxed and confident, so you can deliver your best performance on the day.

Preparation is key to nailing any interview.

When should you start your preparation? As soon as you find out your application has been successful!

Scott Wagstaff, Managing Director of Audrey Page & Associates, is full of insightful advice when it comes to knowing what employers are looking for and how interviewees can make a good impression.

Wagstaff’s first piece of advice is to make sure you tailor your CV or resume for the particular job.

“There is no ‘one size fits all’ resume these days,” explains Wagstaff. “You have to look specifically at what the job entails and try and put yourself in the seat of your future employer about what they are looking for in an employee.”

“Be really clear about what you’re good at and what you’re passionate about, because those are the things that the employer is interested in. If you love something you’re going to do a much better job than if you’re just ho-hum about it!”

In the preparation stage, Wagstaff recommends going to the employer’s website, looking at their ‘Careers’ page, and becoming familiar with the company’s vision, values and strategic intent. You can even have a look at their Annual Report.

“All that information helps you to build up a picture as to whether it’s the right job for you and also shows the employer that you have the motivation and curiosity they’re looking for. It’s a dating game, at the end of the day, in that both parties are happy with what’s happening moving forward.”

You can also use your preparation time to learn how to take charge of your nerves.

Luckily, there are some well-known strategies that many people use to help feel more calm, confident and collected during a job interview.

One of the best things you can do to feel more prepared on the day is to know about the STAR technique – a strategy that can help a lot with answering job interview questions.

The STAR method helps you create well-articulated, clear responses to interview questions that are based on competencies. The method is quite invisible to the listener, coming across as natural, but demonstrating to interviewers how you meet the criteria for each competency.

Situation – a brief description of the situation and context of the story (who, what, where, when, how)

Task – explain the task you had to complete, highlighting any challenges or constraints (e.g. deadlines, costs, other issues)

Action – describe the specific actions you took to complete the task

Result – close with the result of your efforts, including clear stats or figures to quantify the result if possible.

(Note: Wagstaff refers to this method as CAR, where the first point relates to Context.)

As part of your interview prep, create a pre-prepared list of responses that you can use when questioned on possible competencies or skills.

Our nerves tend to play up when we are caught unaware or have to think quickly on our feet. When you’ve already played over possible questions and scenarios in your head, you’ll be more able to respond in a calm and collected way.

You might also like to check out our previous article on how storytelling can be a powerful secret weapon when it comes to job interviews.

Engaging the interviewer by telling relevant stories that demonstrate your strengths can be a great way to make your interview more memorable and stand out from the competition.

Storytelling also shows employers your values. While having the necessary qualifications and experience are certainly important, employers are also interested in finding employees whose values are aligned with that of the business.

In an interview, you’re being given a wonderful opportunity to tell potential employers first-hand how your personal values can support the organisation’s mission and vision. Storytelling allows you to go into a lot more depth in this area, with personal or work-related stories giving insight into the core values that are uniquely important to you.

For example, you may be able to describe how overcoming a particular challenge helped you build greater resilience in the workplace, and how you can successfully apply that quality to the potential role. In this way, you can effectively demonstrate your values while building a stronger emotional connection with your interviewers.

Do all of the above and you’ll be feeling cool, calm, collected and ready to show hiring managers why you’re a valuable asset to their team and organisation. Good luck!

Tips you need to read before your next interview

At some point, all managers will be faced with an employee who is difficult to deal with, has trouble working with colleagues, or continually fails to hit their KPIs and deliver.

Knowing how to deal with these kinds of issues can be tricky. But addressing challenging employee behaviour should be a top priority for employers and managers.

It’s really important to nip any problems in the bud sooner rather than later, instead of assuming (or hoping!) that poor performance or behaviour will improve in time.

When addressing an issue with an employee, it can be helpful for managers to know the difference between performance and behaviour. Why is it so important to distinguish between the two?

Because differentiating between the two will affect the way in which you manage the situation.

Are you dealing with poor performance or behaviour?

Anna Pannuzzo, from HR consultancy Workplace Plus, explains how managers can tell the difference between a performance issue and a behaviour issue.

Telling the difference “is not easy,” admits Pannuzzo.

“Performance is generally aligned to an employee’s skills, abilities, and knowledge,” she explains.

In contrast, issues such as constantly being late, or sending an inappropriate email to a colleague, are behaviour issues.

Sometimes, an issue can be both performance and behavioural. For example, if part of your position description is to attend certain meetings, skipping out on those meetings will impact your deliverables and KPIs. In this way, an employee’s behaviour is having a negative effect on their job performance.

Negative behaviour or attitude can be trickier to address and fix than performance and skill-based problems. When individual staff members are displaying challenging behaviour at work, it impacts the organisation as a whole. In addition to stress and conflict, it can result in poor team performance, low productivity, and a negative work environment.

If left unchecked, challenging employee behaviour can also lead to higher absenteeism and staff turnover, affecting your company’s reputation and bottom line.

So what can you do to address poor performance or behavioural issues in the workplace?

Whether it’s performance or behaviour, it’s vital that employers and managers deal with it, quickly and professionally. Managers need to identify the expectations of what’s required, have a discussion and provide feedback if things aren’t being delivered accordingly.

Of course, being in a management position doesn’t mean that you’re instantly an expert on knowing how to raise issues with staff or give critical feedback. But rather than avoiding this part of your job, it’s important to get it done. In this way, leadership comes with a price – and a significant part of that price is the responsibility to give feedback, coach and address the performance of any team member that does not measure up to expectations. Doing this with your employees is also an opportunity for them to grow and learn.

The first step is to get it clear in your head whether the employee’s actions are coming from a performance or behavioural issue. This is a really important step to take before you can proceed to manage the problem.

If it is a skills issue, and therefore performance, then you’ll need to think about providing further training to your employee. You might also consider a mentoring or coaching solution. There may be limitations with inadequate tools, or software, or other problems with the workplace environment – these can then be reviewed and appropriately addressed. Similarly, if an employee is struggling to meet deadlines because of limited time, restructuring work tasks could be a solution. In all of these scenarios, you can see that it is not the behaviour or attitude of the employee that is the problem.

In terms of misconduct, or behavioural issues, this can be harder to address and fix. Ensure that you have a current position description that clearly outlines the duties of the position and the performance and behavioural expectations of the job. It’s important to have this serious discussion with the employee about their behaviour, so you can then identify a way to resolve it and come up with strategies to improve the situation.

In all cases, it’s also important to acknowledge that an employee may have personal or health problems that are affecting their ability to deliver. If so, Employee Assistance (EAP) counselling may be a good solution, to get to the bottom of the problem while providing your team member with the help they need.

If you’re looking for more guidance on this topic, there are plenty of courses on the Go1 platform that will help you better understand employee behaviour and give you the confidence you need to address any issues before they get out of hand.

For more insights, be sure to subscribe to the Go1 newsletter to stay on top of all the latest L&D trends. Or, you can book a demo today to find out how Go1 can help with your team’s learning needs.

When addressing an issue with an employee, it can be helpful for managers to know the difference between performance and behaviour. We'll explore the difference between employee performance and behaviour.

The difference between managing employee performance and behaviour

Multiple industries, including construction, medical, chemical, process manufacturing, automotive, and aviation must follow compliance laws. The purpose is to ensure businesses operate safely and efficiently. In addition to keeping workers safe, compliance is what helps different types of companies perform at an optimal level.

The question becomes when you should launch compliance training programs.

Whether you recently started a new business or have an existing company without any compliance training programs already implemented, you do not want to wait to start planning. The longer you go without providing your employees with the appropriate training, the more you expose your business to risks.

Keep in mind that setting up even one program does not happen overnight. It takes research and careful planning. Start by organizing a team to determine which training programs workers need to complete for your specific industry. Ultimately, these programs would apply if you have a publicly regulated business and have employees who work under stringent regulations.

It can take up to three weeks to gather all the pertinent information needed, another week to choose the appropriate online courses, and then 2-3 weeks for final planning. During this process, the goal is to understand the specific risks that your company faces, allowing you to select courses that address each of them.

The key to choosing online training courses is to have the information you need about compliance issues so that you can make a well-informed decision. As part of this, determine if you require every employee to go through training or select departments that are exposed to risk. Remember, compliance is not just about safety but also efficiency. Therefore, training covers multiple topics, including manufacturing processes, chemical handling, human resources, social media use, working with government agencies, and much more.

With all the necessary information gathered, now comes the fun part of selecting the required compliance training courses. When you deal with a reputable source, you can find compliance training on virtually anything you need. One particular company offers courses created and often presented by either industry or compliance experts. Also, because these courses generally take 30 minutes to an hour to complete, there is no disruption in business operations.

The Benefits of Compliance Training Programs

Newly Hired Employees – You can make compliance training mandatory as part of the orientation. Before starting official work, the new hire should take the required courses. If you have a group of new employees, you could have them all complete the training at the same time.

Existing Employees – The way you set up compliance training will depend on the number of workers you have. For a small business with 5-10 employees, you could have one individual at a time complete one or more courses to avoid disrupting workflow. For a large organization of 50 employees or more, you might consider setting up groups of 10 who can take the training together.

Hefty Fines – If enforcers of compliance laws find that your business is non-compliant, you could face hefty fines.

Insurance – Being non-compliant also puts your company at risk for either paying significant insurance premiums or having your current provider drop you.

Contracts – You know all the contracts that you and your team worked so hard to secure? If not compliant, there is a good chance of having them become unenforceable. In other words, all the hard work was for nothing because of invalid contracts. In addition to that, you could lose those customers and end up with a damaged reputation.

Tax Liability – There are even tax liability issues when non-compliant.

When should you plan to launch your compliance training programs?

When establishing a business, one of the first things you do is define the company values. Those values become the foundation on which you build everything. Whether hiring new employees or going over policies with existing workers, you educate them on what your values are and how they apply to the mission you want to achieve.

You might think that that is enough, which is a common mistake among business owners. There are times when you need to revisit your company values. In fact, you should revisit them regularly. Why? As you will discover with the information provided, there are many different reasons for doing this, which ultimately benefit you, your organization, your employees, and the customers you serve.

Keep in mind that reviewing your company values does not automatically mean you have to make changes. Even if you feel they need refining, changes are not necessarily significant. Do you need to revisit your company values? Absolutely and if it has been some time since you have done that, or you have never done it before, make this a priority.

From a customer’s perspective, the answer to several questions determines whether they buy from a particular company. For example, they want to know why a business exists, what makes it unique or better than its competitors, and why should they make a purchase with them. When you create core values for your business, you can answer these and other questions.

Virtually every aspect of your business revolves around the values you create. The goal is to establish core values, articulate them, and then put them into circulation. You want you prospective clients, existing customers, and even your competitors to know what your company stands for and why. Revisiting your values and making changes as needed also gives consumers a viable reason for choosing your business over another.

Expanding audience - If you initially thought your company would serve a specific group of consumers best, only to discover over time that your product or service has a much broader reach, the values you first set no longer apply. In that instance, they need modification.

Company acquisition – Instead of doing away with your company values as part of an acquisition, you want to find a compromise between the values of both organizations. While somewhat tricky, this is possible. In this situation, both companies need to agree on one set of values to prevent sending out mixed messages that could damage the business.

Employee education – You can have all the values in the world, but unless your employees know what they are and abide by them, they do not offer much. When creating values, consider the people who work on your different teams. What is important to them? What successes do they want to achieve? Companies cannot succeed without employees, so when creating values, keep them in mind. If your current values do not coincide with the aspirations of your workers, it is time to revisit them. You want values that your employees respect, believe in, and want to carry out on behalf of the company.

Times have changed – When it comes to changing times, think about technology as a prime example. If you started your business over 20 years ago, there is little chance that your initial values considered the advantages of modern day technology. Remember, you can maintain your core values, things like honesty, hard work, and integrity, but some of the other values need updating to go with the advances of today. Otherwise, people will have a difficult time relating to your business.

Attracting talent – Attracting talent is one of the most significant challenges that business owners face. Even if you offer an excellent salary and benefits package, people want more. The greatest talent wants to become a part of a team within a company that has strong or similar values. For this reason, it is imperative that you identify the things that the best talent wants from a company and adjust your values accordingly.

Establishing the company culture – In addition to making consumers eager to buy from your company, you want your workers to feel excited about the business and what it represents. As the owner, you have a unique opportunity to establish a culture within the work environment by revisiting your business values. When these align with employees and create deeper connections, you end up with teams that work harder and perform better.

You can even offer your employees different online training courses that address different aspects of company values by visiting the Go1 website. With that, they will gain a new understanding and appreciation when you modify company values. You too can complete courses to guide you through the process of making changes, when and if necessary.

Why you need to revisit your company values regularly

When talking about customer retention, this refers to actions and activities that your company takes to prevent customers from going to a different source to make a purchase. In other words, you want to build a base of as many viable customers as you can so that when interested in buying a product or service you sell, they visit your business first.

The number one reason that customer retention is essential for your business is that it builds loyal customers who return to your company time-after-time when interested in what you offer. The goal is to keep the existing customers you have or those you’ve already invested in through various marketing strategies.

When you consider that it costs five times more to acquire a prospect than it does to hang on to your current customers, you can see there is a significant cost-saving factor. In fact, for some industries, the cost to acquire a new customer jumps to a whopping 30 percent compared to focusing on existing customers. Think of it this way, for every 5 percent increase in customer retention, your profits rise between 25 and 95 percent.

Instead of making the mistake of thinking that you need to invest more money and time on prospects, recognize how vital customer retention is to your business growth. That doesn’t mean you should give up on trying to sway prospective customers. It’s just that you should give the majority of your attention to the ones you have.

There is a substantial cost difference between going after prospects and keeping your current customers. Because of that, you can scale back your marketing efforts, which saves you money. Something else to consider is that since your existing customer base is already familiar with the product or service you sell, you would not need as many people to provide customer support, which results in additional cost savings.

With customer retention, you will see an increase in repeat business, which equates to more generated profit. Not only do loyal customers return to a company they trust, but over time, they typically increase the amount they spend, up to 33 percent compared to newly acquired customers. Also, your existing customers are 50 percent more inclined to buy a new product or service from you.

A loyal customer is someone satisfied with your company, including your service, support, price, policy, and product or service offered. In their minds, your business cares about them and what they want. For that reason, it is essential that you conduct research and generate reports that indicate what it is your faithful customers buy. It is just as important to gather information periodically about what new offerings they would have an interest in purchasing.

When your customers buy something and feel completely satisfied, they will quickly share their experience with family, friends, co-workers, neighbors, and almost anyone who will listen. For instance, a company that sells trendy and comfortable women’s shoes at a competitive price will attract people. Before long, you will see the same women coming back to buy more.

When happy with a purchase, women will tell everyone that your company is the place to go for incredible shoes at affordable prices. As a result, you benefit from word of mouth advertising without spending a dime. Look at recent statistics that show just how significant the impact of existing customers to your business.

Of all consumers in the United States, 49 percent say that family members and friends are their primary source of brand information.

When someone refers a friend to your business, that individual is four times more likely to purchase something from you.

As high as 92 percent of people trust a recommendation offered by a family member or friend.

Just one person spreading the news by mouth about your business is enough to drive sales up five times compared to paying for advertisements.

Retained customers who feel satisfied with your company are likely to refer other customers. That means spending less on marketing to acquire prospects.

People who become customers due to a referral have a higher lifetime value than prospects acquired using other methods.

As mentioned, loyal customers have no problem spending more on things you sell. Over time, they become less focused on money and more on ending up with a superior product or service. To them, the combination of outstanding support and quality offering is more important than saving a few dollars.

Social media is more than just a way for people to connect on a personal level. Retained customers often post comments on various platforms in response to having a positive buying experience. Studies show that as much as 97 percent of consumers say the chance of them becoming a loyal customer would increase if the company used their feedback. That statistic shows how critical is to have a place on your website and social media sites for customer comments.

At the same time, 55 percent of consumers in the U.S. say that if a company ignores their feedback, they will not likely make an additional purchase. When focusing on your existing customers, make sure that everyone who leaves a comment, good or bad, receives a response.

In looking over the information provided, you should feel ecstatic that you have a way to build your company and achieve higher business success with very little financial investment.

The best way to accomplish that goal is by increasing brand and customer loyalty, but how do you do that? It all comes down to how well your employees engage with the customers they serve. That does not mean working robotically to make a sale but genuinely taking an interest in the customer and what he or she wants to buy.

For that, you need a way to teach your employees the right way to engage with customers, which comes from superior online training courses. Through that, you will notice a marked improvement, not only in customer loyalty but also to your employees’ attitude while at work.

When it comes to improving customer retention, employee engagement is crucial. At Go1, we offer a broad range of online training courses on this very topic, created and presented by experts with a ton of experience. Incorporate eLearning into your company and watch what happens.

Why employee engagement is important for improving customer retention

Perhaps the best way to determine what your company does right and wrong starts by assessing the level of engagement among your employees. With that, you have the opportunity to understand better what drives your employees to succeed. Many companies use employee engagement surveys to gather valuable information -  but are they truly beneficial?

Start by understanding what this type of survey is and why companies use it. Rather than measuring the level of happiness among employees, the results of this survey indicate the workers’ dedication to the company and the customers they serve. Using an employee engagement survey provides you with incredible insights into how engaged your employees are, as well as the primary drivers of engagement within your organization.

With new knowledge, you can make critical decisions that streamline the operations of your business. You might discover that some employees cannot reach their full potential in their current department, that you have some issue with management, that some of the company policies need redefining, or that you have workers who should consider employment elsewhere.

Skilled Leadership – For your leadership to work effectively, they need to have some understanding as to the mindset of their team. With an employee engagement survey, your management can determine the emotional commitment of the employees under their supervision.

Broad Reach – Just like managers, no two employees are the same, meaning they all have different opinions and ways of working. A key advantage to using this type of survey is that it gives leaders a broader perspective of their team’s attitude. Before investing valuable time and resources on significant changes, use the survey results to understand both positive and negative aspects of your workers in how they perceive their roles and responsibilities.

Learning Tool – Remember, an employee engagement survey helps identify areas that need addressing. When used as a tool for learning about workers instead of a way to fix what they are doing wrong, the survey creates an opportunity to find viable solutions. Again, that could mean moving an employee to a different department, having someone perform a different task, or terminating employment altogether.

Making Comparisons – Another benefit of an employee engagement survey is that it allows you to understand the various groups within the company. For instance, are your part-time employees more dedicated than your full-time staff? Is the same level of engagement seen throughout the organization? Do workers under specific managers engage more than others?

Building Trust – While some people think that employee engagement surveys make workers distrusting, the opposite is actually true. These surveys show teams the commitment that both the company owner and leadership have in gaining a better understanding and making the necessary changes to benefit them. With that, the level of trust among employees grows, making the work environment more cohesive.

Potential Drawbacks of Employee Engagement Surveys

Not Following Through – You can gather a ton of information and identify the required changes, but unless you act, this survey is worthless. Remind yourself that the survey is merely a vehicle for gaining insight. After recognizing where things should change, it is imperative that you follow through. Your managers and employees are watching how you respond to the survey results. Doing nothing would damage relationships and trust. On the other hand, if you take swift and appropriate action, you instill hope and optimism in every worker, regardless of position.

Exhaustion – If you plan to use an employee engagement survey in your company, make sure that you only do so occasionally and never back-to-back with other surveys. Repetitive questions become exhaustive. They also create a sense of panic among workers who fear that you have something bad planned for the company. Use surveys when and if necessary. Also, send out a company-wide email that explains to your workers what an employee engagement survey is and why you chose to conduct it. You want to put your teams at ease so that they can continue producing.

With eLearning, you can select courses to boost their self-confidence and teach them what they need to know in their respective roles.

At GO1, we have thousands of available courses to help improve employee engagement. Not only are these courses affordable, but the majority take an hour or less to complete. With these, you will see a remarkable change in the level of engagement within your organization.

Are employee engagement surveys beneficial?

Go1.com was featured in SBS Small Business Secrets earlier this month where our co-founder and head of growth, Vu Tran, was interviewed.

The inspiring program tracked Go1.com’s success to date and covered Vu’s life - how his parents fled Vietnam to find a better future for their children in Australia.

It also showcased one of our key partners, Australia’s CEO Challenge, a not-for-profit domestic violence awareness training provider who works closely with the corporate sector.

In the segment, Australia’s CEO Challenge chief executive Jacque Lachmund explains how Go1.com is crucial to helping the organisation deliver domestic and family violence training to their clients.

Go1 featured on SBS Small Business Secrets

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